Mountain View, Calif., July 26, 2011 — Utilities have still not shaken off the investment torpor brought on by the downturn, but that is set to change with the country's alarming dependence on other countries for its escalating energy needs.
The government is offering several subsidies and incentives such as soft loans, tax benefits and feed-in tariffs to attract investors in its energy industry and ensure energy security.
New analysis from Frost & Sullivan, North American Electrical Equipment Market for Power Generation, finds that the market earned revenues of $1.16 billion in 2010 and estimates this to increase to $2.16 billion in 2015.
"Production tax credits have helped wind power producers to reduce energy rates to less than five cents per kilowatt hour (kWh), making it competitive with conventional power generation," said Frost & Sullivan Principal Consultant Farah Saeed. "Many states have adopted renewable portfolio standards to encourage investments."
The expected growth in power demand has not only catalyzed the market for renewable power generation, but also compelled utilities to invest in new and conventional electrical equipment and technology to improve the efficiency and reliability of the plant's operation.
"The government is aiming to harness its natural gas, wind and solar energy, thereby reducing dependence on other countries," said Frost & Sullivan Senior Research Analyst Vignesh Sundaram. "The increasing investments in new natural gas power plants and renewable fuel sources such as wind and solar power generation will boost the need for electrical equipment."